Austin American-Statesman from Austin, Texas • 107

Coming Sunday With the proliferation of online auctions, virtual buyers must virtually beware. isii Saturday, October 23, 1999 'l 'era mm o) i EMS Focus: Central Texas Homes Dow Jones industrial average, dose 92499 10V99 10899 1015799 102299 10,700 10,600 10,500 10,400 7 luiMOjAPaa Ljv.i.x.tw.- 10,100 10,000 m. upscale Fla! Once a rustic outpost, Jonestown becoming a posh Austin suburb By R. Michelle Breyer American-Statesman Staff rr TV eet the next West Lake Hills, the next Tarrytown: Jonestown, Texas. At least that's what developers and Jonestown city leaders are say R.

Michelle Breyer The Real Deal One turnover thatMackovic would like to see Former University of Texas football coach John Macko-vic is selling his house. Located on a private little street in West Lake Hills, the house is listed at $1.75 million. The house sits on 2.54 acres. Before it went on the market this week, the Mackovic home was what real estate brokers call a "hip-pocket" deal. With hip pocket deals, the house wasn't formally listed.

There was no sign in the front yard. But a select group of real estate brokers knew the house would sell for the right price. Hip-pocket deals tend to involve high-dollar properties and owners who want to keep a low profile, without curiosity seekers wandering through their homes. But sometimes it takes a little See Breyer, Back page pjr: ing about this quaint city of 1,500 on the north side of Lake Travis, an hour's drive from Downtown Austin during rush hour. Along this quiet stretch of FM 1431 between Lago Vista and Cedar Park, where a few modest restaurants and shops dot the road, it's hard to Taylor JohnsonAA-S photos Early days: Smaller, more modest homes such as this one on Spring Road typify the first developments in the city on the shores of Lake Travis.

V. imagine Jonestown as an exclusive address. But up Old Burnet and Reed Park roads, gated communities such as NorthShore, North Lake Hills and The Pointe are springing up on thousands of tree-shaded acres near the lake developments where homes will range from $250,000 to several million dollars. Within two years, the hilltops of Jonestown will be dotted with rambling mansions and villas set behind formidable gates. Not bad for a city that spent decades as an underachiever Jonestown is undergoing a transformation.

Sprawling mansions in gated communities are being built only a few miles away from the 50-year-old modest bungalows on Spring Road. Median home prices $140,000 Dow Jones industrial average 10,470.25 172.56 Nasdaq composite 2,816.52 14.57 1,301.65 18.04 Philadelphia Semiconductor 513.76 8.15 Mexico Bolsa 5,156.06 50.79 COMMODITIES, spot price, near month delivery Oil (light sweet crude, barrel) $23.45 .84 Natural gas (1,000 cu. ft.) $3,072 .008 Get your Saturday stocks American-Statesman subscribers can receive the Weekly Business Review, a supplemental section with complete stock listings. Call 416-5700 and enter category 1994, for delivery with next Saturday's paper. Computers won't delay later Nasdaq trading NEW YORK Securities companies whose computers aren't ready to accommodate after-hours trade reporting won't delay the Nasdaq stock market from extending the hours of its stock quote ticker starting Monday to assist late traders.

Nasdaq said broker-dealers unable to update their systems in time would be granted waivers from some regulations related to after-hours trade reporting. Broker-dealers will be allowed until Nov. 15 to report real-time, after-hours trade information on a voluntary basis. Beginning Nov. 15, however, real-time trade reporting will be required during after-hours sessions; Real-time quotes let investors know the most recent stock prices.

Inventory warning hits Gillette BOSTON Gillette stock tumbled Friday after the consumer products manufacturer warned that fourth-quarter sales and earnings are likely to decline because of inventory problems. Gillette shares fell as much as 10.6 percent before recovering some of the lost ground. It closed down 5 percent, or by $1.87, at $36 a share on the New York Stock Exchange. Chairman and Chief Executive Officer Michael Hawley said Thursday that industry consolidations were a primary reason why Gillette needed to reduce inventories especially blade inventories in Europe. Waste company finds problems Waste Management Inc.

says a massive audit has uncovered more accounting problems, but says the findings should pave the way for a re- -covery. Story, 07 TT IXC posts big quarterly loss IXC Communications Inc. reported another big quarterly loss Friday as the Austin-based communications company continued to address its business problems in prepara Sam Billings: Mayor of Jonestown expects tax base to quadruple in next five years. PT 130,000 120,000 EHSEl 110,000 loo.ooo yMMii 90,000 jdr More CENTRAL TEXAS HOMES Real Estate House Calls, G3 On the move, G4 Recent home sales, G4 In the spotlight, G5 Austin's hot real estate area. Graphic, Back page Older gays seek retirement housing without bias, Back page a place once home to menacing bike gangs, drug dealers and other ne'er-do-wells.

"It's a dramatic transformation for Jonestown," said Jonestown Mayor Sam Billings, a tall, lanky real estate broker who has lived in Jonestown on and off most of his life. For some residents, it's an unwelcome change that threatens to drive them out of their well-kept secret on the shores of Lake Travis. "My husband used to know everyone," said Jonestown resident Heather Ward, whose family plans to move out of Jonestown to a smaller community. "Now, there are too many people." Others view the changes as an economic bo- 80,000 1998 1999 1997 1996 1994 1995 Numbers are for the Lake North area, which includes Lago Vista and Jonestown See Jonestown's, G2 Aug. '99 Looking ahead: This house in the new North Lake Hills development is Jonestown's future large luxury homes perched on the "sw tion for its expected acquisition by Cincinnati Bell Inc.

IXC reported a net loss of $85.8 million, or $2.29 a share, on rev 1 'HE3! 'O enue of $76.1 million for the quarter ended Sept. 30. That compared with a loss of $30.6 million on revenue of $65.5 million in the third quarter a year ago. The loss, although deep, was less than analysts expected. IXC's stock closed at $43.18 a share, up $1.50 in Nasdaq trading Friday.

Punishment sought for Cresvale TOKYO Japanese securities regulators recommended punishment for Cresvale International the subsidiary of a Princeton, N.J. company embroiled in charges of a $1 billion securities fraud. The regulators said Friday that Cresvale executives gave kickbacks to Japanese companies and provided false information about investments. The usual punishment in such cases is to shut down the offending company. Items are compiled from staff and wire reports.

How to contact us: Business Editor Becky Bisbee: 445-3671 Fax: 445-3971 E-mail: Businessstatesman.com P.O. Box 670, Austin, TX 78767 Aviation magazine paints gloomy picture for air travel Pervasive's bad day After telling analysts it would spend $13 million on a struggling software program, Pervasive Software's stock plummeted. close: Thursday $36.06 $40 July 23 $22.06 72 2B ft Friday's close: $12.00 Down $24.06 20 15 10 C2U Correction Robert CalzadaAA-S Source: Nasdaq Pervasive shares drop 66 Some travel agents boycotting United By Dave Carpenter Associated Press CHICAGO Through postings on Internet travel sites, faxes and customer bookings, travel agents across the country are venting their wrath at United Airlines for slashing the fee it pays them for selling tickets. "United Airlines has been expelled from this travel agency," declares a sign posted on the marquee outside John Shands' agency in Brownsville. "I'm sure my $50,000 in business isn't going to make a whit of difference to United Airlines.

But I'm just not going to support them any more on this," said Shands, who owns three travel agencies in South Texas. Others in Austin aren't as strident in their actions, although they're no less frustrated. Linda CarrelL a 20-year veteran agent who works at Victor Emanuel Nature Tours and Travel, said that customer preference comes See United, G6 By Julia Malone American-Statesman Washington Staff WASHINGTON The normally staid and technical magazine Aviation Week is pushing the alarm button in a special report filled with dire predictions of worsening congestion, narrower safety margins and increasing delays in air travel After evaluating the worldwide air traffic system, David North, the magazine's editor-in-chief, writes in Monday's issue, "we found that Europe is indeed in a state of crisis with delays and gridlock, and the U.S. is rapidly approaching that point." With an expected 50 percent increase in the U.S. flying public over the next decade, the report predicted that an average travel day in 2010 will have the feel of a current day before Thanksgiving.

The report blames the problems on an "archaic" air travel infrastructure and the failure of the Clinton U.S. Transportation Department and Congress to act on recommendations made by three commissions. See Magazine, G6 Pervasive's 250 local employees off guard. "The magnitude of the hit is certainly a surprise," Harris said. "But we have never run this business with an eye toward the short-term, and we are confident that our investments will ultimately be paid back." Pervasive's drubbing came on an otherwise good day on Wall Street.

The Dow Jones industrial average See Pervasive, 66 By Lori Hawkins American-Statesman Staff Pervasive Software Inc. stock lost two-thirds of its value on Friday after the company surprised Wall Street with new spending plans that will put it in the red. Shares plummeted 66 percent, or to close at $12.00 in heavy Nasdaq trading. At the company's Austin headquarters, the big drop caught Chief Executive Ron Harris and David KennedyAA-S Because of an editing error, an article in the Oct. 16 Business section incorrectly stated that a lot on Buckeye Trail in West Lake Hills had been sold.

The 4.17-acre lot, which has views of the city and Town Lake, is still for sale. The listing price is $1.85 million, and the agent is Laura Got-tesman of Moreland Properties..